US Treasury prices recovered overnight following yesterday’s sell-off due to the weak 30-year auction. The market struggled to absorb $26 billion in issuance and set a record, eclipsing the previous high-water mark set in May by $4 billion. Soft economic data out of China and new UK quarantine rules initially sparked the risk-off sentiment while disappointing US retail sales compounded the concerns. The headline estimate showed July retail sales slowed to 1.2% MoM compared to expectations of 2.1%. With today’s reading, the total value of retail sales has now exceeded pre-pandemic levels. At the open, the 10-year yield has decreased to .70% and S&P 500 futures are down 3.75 points (-.11%).
Associate, Investment Management Group
|8/14/20||Retail Sales Advance MoM||2.10%||1.20%||7.50%||8.40%|
|8/14/20||Retail Sales Ex Auto MoM||1.30%||1.90%||7.30%||8.30%|
|8/14/20||Retail Sales Ex Auto and Gas||1.00%||1.50%||6.70%||7.70%|
|8/14/20||Retail Sales Control Group||0.80%||1.40%||5.60%||6.00%|
|8/14/20||Unit Labor Costs||6.90%||12.20%||5.10%||9.80%|
|8/14/20||Industrial Production MoM||3.00%||3.00%||5.40%||5.70%|
|8/14/20||Manufacturing (SIC) Production||3.00%||3.40%||7.20%||7.40%|
|8/14/20||Bloomberg Aug. United States Economic Survey|
|8/14/20||U. of Mich. Sentiment||72||—||72.5||—|
|8/14/20||U. of Mich. Current Conditions||82.3||—||82.8||—|
|8/14/20||U. of Mich. Expectations||65.5||—||65.9||—|
|8/14/20||U. of Mich. 1 Yr Inflation||2.90%||—||3.00%||—|
|8/14/20||U. of Mich. 5-10 Yr Inflation||—||—||2.60%||—|
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